Absolute Software Completes Acquisition of NetMotion to Deliver Next Generation Endpoint Resilience

VANCOUVER, British Columbia and SAN JOSE, Calif.–()–Absolute Software Corporation (Nasdaq: ABST) (TSX: ABST), a leader in next-generation Endpoint Resilience™ solutions, today announced that it has completed its previously announced acquisition (the “Acquisition”) of 100% of NetMotion Software, Inc. (“NetMotion”), a leading provider of connectivity and security solutions, from The Carlyle Group.

The purchase price for the acquisition was approximately US$340 million, subject to customary closing and working capital adjustments, and was paid in cash. The acquisition was financed with approximately $65 million in cash from Absolute’s balance sheet and a $275 term loan (described below).

Absolute has the industry’s only indelible defense platform embedded in more than half a billion devices, capable of providing complete connectivity, visibility and control of endpoints and applications, as well as the ability to repair independently critical controls to ensure they remain healthy and operating effectively. With the addition of NetMotion, Absolute combines the power of self-healing devices and apps with a resilient network connection to deliver the next generation of Endpoint Resilience, enabling organizations to prioritize a secure user experience while minimizing strain. on IT and security. teams, maximizing technology functionality and strengthening the overall security posture.

“We are thrilled to officially welcome NetMotion to the Absolute family,” said Christy Wyatt, President and CEO of Absolute. “As organizations across industries work diligently to determine what the future of work or learning looks like, there is a strong demand for capabilities that can autonomously deliver security, scalability and connectivity. without hampering the user experience and without overburdening IT and security teams. By combining the power of self-healing devices and applications with a resilient network connection, we are well positioned to be the single source of intelligence for the endpoint at the edge – enabling our customers to operate confidently and securely in the workplace from anywhere.”

“One of the key trends emerging from the pandemic has been a fundamental rethinking of how to deliver network and security services to distributed workforces,” said Garrett Bekker, principal research analyst, Security at 451 Research, which does part of S&P Global Market Intelligence. “This shift in mindset, in turn, fueled interest in Trustless Network Access (ZTNA) and the Secure Access Service Edge (SASE).”1

The acquisition is expected to bring significant benefits to Absolute’s strategic position, including:

  • Strengthen Absolute’s overall competitive position and establish next-generation device resiliency as a critical capability in the “work from anywhere” era.

  • Establish a competitive position in the high-growth Zero Trust and ZTNA markets with a unique endpoint-focused offering.

  • Secure a highly relevant position in mobile with an enterprise-grade VPN offering and enable customers to efficiently transition through the transition to more modern security expectations of Zero Trust and SASE.

  • Provide a complete IT view of the remote and hybrid worker, with the ability to collect data on demand, enabling organizations to respond faster to user needs, improve compliance and strengthen security.

Absolute financed the acquisition with cash on hand and with the proceeds of a US$275 million secured term loan from Benefit Street Partners LLC pursuant to a credit agreement dated July 1, 2021. The loan facility has a six-year term and bears interest at a variable rate based on LIBOR or the US base rate plus a variable margin, and contains the usual terms and conditions for senior secured financing of this nature.

For more information on Absolute’s acquisition of NetMotion, visit here. To learn more about how Absolute gives organizations the power of self-healing network endpoints, applications and connections, visit www.absolute.com.

About Absolute Software

Absolute Software is a leader in Endpoint Resilience solutions and the industry’s only indestructible defense platform built into more than half a billion devices. Enabling a permanent digital link between the endpoint and the enterprise that distributed it, Absolute provides IT and security organizations with complete connectivity, visibility and control, whether a device is on or off the network of enterprise, and empowers them with Self-Healing Endpoint™️ security to ensure critical applications stay healthy and deliver desired value.

About NetMotion

NetMotion™ (by Absolute) provides security solutions for millions of devices deployed worldwide. Customers choose the NetMotion platform for its powerful Zero Trust Network Access (ZTNA), experience monitoring, and mobile enterprise VPN functionality. These solutions stand out for their ability to actively improve the employee experience.

©2021 Absolute Software Corporation. All rights reserved. ABSOLUTE and the ABSOLUTE logo are registered trademarks of Absolute Software Corporation in the United States and/or other countries. Other names or logos mentioned herein may be trademarks of Absolute or their respective owners. The absence of the ™️ and ® symbols near each mark, or none at all, herein does not constitute a waiver of ownership of the associated mark.

Forward-looking statements

This press release contains certain forward-looking statements and forward-looking information, as defined by applicable securities laws, including, without limitation, the United States Private Securities Litigation Reform Act of 1995 (collectively, “Forward-Looking Statements”). “). Forward-looking statements normally contain words such as “will”, “intend”, “anticipate”, “could”, “should”, “may”, “could”, “expect”, “estimate », « plan », « plan ». “, “potential”, “project”, “assume”, “intend”, “believe”, “should”, “planned” and other similar terms and, in this press release, include, without limitation, any statement (whether express or implied) regarding: future events and anticipated operating results and business strategies; the anticipated operational and financial benefits of the acquisition to Absolute; the expected competitive advantages of Absolute following the Acquisition; the product offerings offered by the combined company and the nature and benefits of such product offerings offered; the anticipated impact of the Acquisition on the business and future financial profile of the combined company as well as on financial and operating results; and other aspects of Absolute’s strategies, operations or operating results. Forward-looking statements are not guarantees of future performance, actions or developments and are based on expectations, assumptions and other factors that management currently believes are relevant, reasonable and appropriate under the circumstances. The expectations, assumptions and other important factors used in making the forward-looking statements set forth herein include or relate to, but are not limited to, the following: Absolute and NetMotion will be able to retain and hire key personnel and to maintain relationships with customers, partners, and others with whom Absolute or NetMotion does business; Absolute will be able to successfully integrate the operations of NetMotion and realize the expected benefits to Absolute from the Acquisition; the combined company’s financial profile will align with Absolute’s guidance; Absolute will be able to implement its plans, forecasts and other expectations regarding Absolute’s business after completion of the Acquisition and achieve the expected synergies; and there will be no material disruption to business following completion of the Acquisition. Although management believes that the forward-looking statements contained herein are reasonable, actual results could differ materially due to the risks and uncertainties associated with and inherent in Absolute’s business (as more particularly described in the “Risks and Uncertainties” section). of Absolute’s Third Quarter Fiscal 2021 Management Report. Discussion and Analysis, available at www.absolute.com and under Absolute’s SEDAR profile at www.sedar.com and on EDGAR at www.sec.gov), including the following specific risks: that the effect of the announcement and/or completion of the Acquisition will impair Absolute’s or NetMotion’s ability to retain and hire key personnel and maintain relationships with customers, partners and other key individuals with whom Absolute or NetMotion NetMotion does business and would otherwise harm the results of operations and the business of Absolute or NetMotion generally; that Absolute may not be able to successfully integrate the operations of NetMotion; that Absolute may be unable to implement its plans, forecasts and other expectations regarding Absolute’s business after completion of the Acquisition as expected, or at all, to achieve the expected synergies from the Acquisition; that the combined company will not have the projected financial profile and will not enjoy the financial benefits expected from the Acquisition; and that the announcement and/or completion of the Acquisition will otherwise disrupt Absolute’s business. Additional material risks and uncertainties applicable to the forward-looking statements included herein include, but are not limited to, unforeseen events, developments or factors that cause the foregoing expectations, assumptions and other factors to ultimately be inaccurate or irrelevant. Many of these factors are beyond Absolute’s control. All forward-looking statements included in this press release are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this press release are made as of the date hereof, and Absolute undertakes no obligation to publicly update or revise any of the forward-looking statements included, whether as a result of new information, future events or otherwise. , except as required by applicable securities laws.

_______________________________

1 451 Research, a subsidiary of S&P Global Market Intelligence

“Another day, another SASE-powered deal as Absolute takes over NetMotion” May 12, 2021

Darcy J. Skinner